Capricorn Group CEO Brad Gannon has issued a strong warning to consumers looking to purchase an EV as the fuel crisis in the middle east sees EV sales soar.
“Australia has more than 40 different car brands offering EVs for sale with the number of new car brands joining the market growing year on year.”
Australia’s low barriers to entry have enabled some vehicle brands to enter the market without a clear plan for servicing and repair support over the life of the vehicle.
“The risk for consumers isn’t at the point of sale but when a repair is needed down the track, when parts may not be available, or brands may not be operating in the country anymore. This could impact not just servicing but re-sale values.
“Workshops are already reporting vehicles sitting idle for weeks or even months, leaving owners paying finance, insurance, and registration on cars they can’t use”, Brad said.
“What we’re hearing from across the industry is that the issues emerging now will define the next five to ten years of vehicle ownership for many Australians”.
These risks sit alongside uncertainty about the long-term cost of EV ownership, particularly as governments move to replace declining fuel excise revenue with road user charges.
“Fuel excise funds the roads and infrastructure Australians rely on every day. As fuel use declines, the Federal Government is facing a $15 billion to $18 billion annual revenue gap. To put this number into perspective, this is just under the cost of the entire Pharmaceutical Benefits Scheme”.
A road‑user charge for EVs is expected, but there is still no clarity on how or when this will be introduced – and what the cost will be for EV users”.
We encourage anyone purchasing a new car to ask some critical questions:
- Where parts are stored
- How many authorised repairers operate locally
- What protections exist if a brand leaves the market
- What is the reputation of the manufacturer
- What are the overall costs likely to be over the next 10 years
“If those answers aren’t clear, that’s a warning sign, no matter how attractive the initial price looks,” Brad Gannon said.
Media Contact: Louise Bailey | +61 (0)436 321 753 | media@capricorn.coop
Note to editors: Brad Gannon, CEO, is available for interview.
About Capricorn Society
Capricorn is one of Australia and New Zealand’s largest and most dynamic Member-owned organisations. Since 1974, we’ve provided our Members with financial and business solutions to make running a business easier. Our flagship Trade Account offers instant credit with over 2,000 Preferred Suppliers, simplified monthly expenses, and a generous rewards program.
We have a strong foundation in the automotive and machinery aftermarkets. Our vibrant community includes over 30,000 Members across Australia and New Zealand, from national franchises to your local family workshop. Last year, Capricorn facilitated over $3.7bn in sales with our Preferred Suppliers.
At Capricorn, we're about more than just products and services. We work hard to ensure that our Members, Preferred Suppliers and People feel like they're part of something bigger, a Community.